Which mortgage should i pay some money off of...

dinkylink

So situation is I have 2 mortgages, 1 for the house I live in and a btl mortgage for a house I rent out.


I have approx £3k which I want to use to reduce one of the mortgages.


My residential mortgage is a variable mortgage currently at 1.84% with approx £148k outstanding


My btl mortgage is a fixed mortgage currently at 3.84% with approx £103k outstanding


Both mortgages allow overpayments of up to 10% each year, I have recently remortgaged both properties so they have just 'started' so to speak and both have approx 25 years left.


Thanks!

Thrugelmir

At the current time I would pay down the BTL mortgage.

You do realise that the rules governing the offset of interest costs against rental income on BTL property are changing.

dinkylink

Okay, thanks. Yes I'm a lower rate tax payer so shouldn't effect me.